06-12-2009, 01:02 AM
Quote:Right, animal spirits. :blink: Probably, the tech bubble was due to the "grow big fast" theory of dot com success which led to too few ventures getting too big a share of venture capital. So, the result was that there were too few eggs in the basket. Over 50% of dot com startups survived the financial crisis, which indicates that their business models were probably the ones not based upon "irrational exuberance". But, yes, I was flabbergasted by the market cap to earnings ratios at that time, and it was a major factor that led me to move my investments to staples and cash in late 1999.
Can you help me understand this? Where did you pull the 50% number from? Which "market cap to earnings ratio" did you follow?
Cheers,
Naverone
ps Congrats on timing the market :w00t: